Bidenomics Wrecked Our Nation: Charles Payne Explains the 'Trickle Up Theory'

You've likely heard the cliché "trickle-down economics." Democrats often cite it to suggest that tax cuts primarily benefit the wealthy. Charles Payne of the Fox Business Network explains why this talking point is misleading. In fact, he argues that Bidenomics has created a "trickle-up economy."

Nancy Pelosi famously claims that for every federal dollar spent on food stamps, recipients generate $1.79 in economic activity—a concept known as the "multiplier effect." The aim isn't just to support consumers but to stimulate the economy.

When stimulus payments are issued, surveys indicate that the bottom 40% of earners tend to spend the money quickly, often on non-essential items. Pelosi, along with proponents of big government and large corporations, understands that when people shop, they frequently buy more than they planned. Economists refer to this as the propensity to consume; we know it as "shop till you drop."

This spending spree was beneficial for Biden in the early years of his $1.9 trillion American Rescue Plan, as it artificially boosted the economy with money Americans hadn't yet earned. Payne points out that economic data from 2020 shows businesses and individuals didn't need additional stimulus.

However, this approach eventually led to soaring inflation, which hit over 9%—a rate not seen in four decades.

Why does this matter?

Payne describes the trickle-up effect: the poor and middle class spend their money quickly, driving demand and funneling profits into corporate accounts. These profits are then transformed into asset wealth and dividends for the top 1%.

The consequence is inflation, leading to a higher cost of living that outpaces real wage growth.

Under Bidenomics, the rich got richer, and the poor and middle-class got poorer.

Big picture, Payne argues the financialization of our economy has hurt local communities and the working class. It used to be money would circulate through a local economy to increase salaries, build more businesses, fund local schools, and more. Today's economy is mostly money, making money. Worse, they are making money from debt. That's why Wall Street continues to thrive and reach higher and higher while the working class drown in debt and continue to live paycheck to paycheck.

It's a debt-driven prosperity. "Sooner or later, it will come tumbling down," says Payne.

To learn more about Charles Payne's predictions for the U.S. economy, watch his presentation at the link below.